Birmingham (AL) Auto Loans

Are you hoping to finance a car in Birmingham? Often, automotive financing is arranged on the lot, but this can take major time out of your day. Rather than spending hours at the car lot or bank, you can fill out an application for a car loan through our site.

This is especially worthwhile for people who’ve got credit problems, as a variety of dealers will review your application, many of which specialize in bad credit lending scenarios.

Auto Finance Rates in Birmingham

Most loan companies don’t supply auto finance rates based on FICO score. Instead, they showcase the lowest rate they offer. In fact, your rate of interest can vary hugely based on your credit, among other variables. The rates shown below are only for informational purposes. These aren’t advertisements, and your actual rate will vary.

Credit Rating

New Car

Used Car

Excellent

3.0%

3.4%

Good

4.3%

4.9%

Average

6.0%

7.3%

Subprime

8.7%

9.8%

Bad

13.5%

14.3%

Very Bad

14.0%

16.0%

Used Car Financing in Birmingham

Yes, the rates of interest for a used vehicle are more expensive than the rates for a new one. On the other hand, financing a pre-owned car or truck is smarter, considering that the total cost will be significantly less. Take a look at the chart below, which displays the costs of auto loans for new versus used cars and trucks.

Years Old

Price

APR

Months

Payment

Interest

Total

New

$19,000

6.00%

60

$367.32

$3,039

$22,039

1 Year

$15,200

7.50%

60

$304.58

$3,075

$18,275

2 Years

$12,920

7.50%

60

$258.89

$2,613

$15,533

3 Years

$10,982

7.50%

60

$220.06

$2,221

$13,203

Once it leaves the dealership, a new car or truck loses as much as 25% of its value, and it keeps depreciating every year. A car that cost $19,000 new won’t be worth but $10,982 after 36 months of ownership. Listed below are the common limitations on used vehicle financing:

Vehicle not more than 7-10 years old.

Mileage no more than 100,000 miles.

Bought through dealer, not private party.

Bad Credit Car Loans in Birmingham

Generally speaking, promotions such as zero down are unthinkable if your credit score isn’t in the 700s. In effect, your FICO score is used a measure of risk. Like any large investment, it’s best to speak with a specialist who can guide you through the process.

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If your credit is pretty lousy, you may be tempted to go to a car dealership that promotes buy here pay here loans. No credit checks come at a price: outrageous rates, strict terms, and high-priced, well-used vehicles. You will be happier with a car loan from a bank, credit union, or loan company. The interest rates will undoubtedly be less expensive, the terms superior, and you have the ability to repair your credit at the same time.

Can a Car Loan Improve Your Credit?

A car loan can be a powerful way to raise your credit score, but it’s vital that you make your payments on time. Your FICO score won’t surge the instant you pay off your loan. It slowly but surely increases as you make your payments from month to month. Most lenders offer automated bill-pay solutions, which are crucial for making your payments by the due date each and every month.